The Finance Bill 2025 has introduced a crucial amendment to Section 276BB of the Income-tax Act, 1961, which pertains to the prosecution for failure to deposit Tax Collected at Source (TCS) with the Central Government. This amendment aims to provide relief to taxpayers by allowing them to avoid prosecution if they remit the TCS within a prescribed timeline.
Key Questions and Answers on Section 276BB Amendment
Q1. What is section 276BB of the Income-tax Act, 1961?
Ans. Section 276BB of the Income-tax Act, 1961 provides for prosecution in case of failure to pay the tax collected at source to the credit of the Central Government.
Q2. What amendment has been made in section 276BB of the Income-tax Act, 1961 in Finance Bill 2025?
Ans. Section 276BB of the Income-tax Act, 1961 has been amended to provide that prosecution shall not be instituted if the person has paid TCS to the credit of the Central Government at any me on or before the time prescribed for filing the statement under proviso to 206C (3) in respect of such payment.
Q3. What happens if the person does not pay TCS even after the expiry of time prescribed for filing the TCS statement under proviso to 206C (3) of the Income-tax Act, 1961?
Ans. The present provisions of sec on 276BB of the Income Tax Act,1961 shall continue to apply.
Q4. What is the relaxation provided to the taxpayer through the amendment in section 276BB of the Income-tax Act, 1961 in Finance Bill 2025?
Ans. Section 276BB of the Income-tax Act, 1961 has been amended to provide the relaxation from prosecution.
The prosecution shall not be instituted if the person has paid TCS to the credit of the Central Government at any time on or before the time prescribed for filing the statement under proviso to 206C (3) of the Income-tax Act, 1961 in respect of such payment.
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